83 FR 10761 - Self-Regulatory Organizations; Fixed Income Clearing Corporation; Notice of Extension of Review Period of Advance Notice To Implement Changes to the Method of Calculating Netting Members' Margin in the Government Securities Division Rulebook

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 48 (March 12, 2018)

[Federal Register Volume 83, Number 48 (Monday, March 12, 2018)]
[Notices]
[Pages 10761-10762]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04903]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-82820; File No. SR-FICC-2018-801]


Self-Regulatory Organizations; Fixed Income Clearing Corporation; 
Notice of Extension of Review Period of Advance Notice To Implement 
Changes to the Method of Calculating Netting Members' Margin in the 
Government Securities Division Rulebook

March 7, 2018.
    On January 12, 2018, the Fixed Income Clearing Corporation 
(``FICC'') filed with the Securities and Exchange Commission 
(``Commission'') advance notice SR-FICC-2018-801 (``Advance Notice'') 
pursuant to Section 806(e)(1) of Title VIII of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act, entitled the Payment, 
Clearing, and Settlement Supervision Act of 2010 (``Clearing 
Supervision Act'') \1\ and Rule 19b-4(n)(1)(i) under the Securities 
Exchange Act of 1934 (``Exchange Act'').\2\ The Advance Notice was 
published for comment in the Federal Register on March 2, 2018.\3\ The 
Commission has received two comments on the proposal contained in the 
Advance Notice.\4\
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    \1\ 12 U.S.C. 5465(e)(1). The Financial Stability Oversight 
Council designated FICC a systemically important financial market 
utility on July 18, 2012. See Financial Stability Oversight Council 
2012 Annual Report, Appendix A, http://www.treasury.gov/initiatives/fsoc/Documents/2012%20Annual%20Report.pdf. Therefore, FICC is 
required to comply with the Payment, Clearing and Settlement 
Supervision Act and file advance notices with the Commission. See 12 
U.S.C. 5465(e).
    \2\ 17 CFR 240.19b-(n)(1)(i).
    \3\ Securities Exchange Act Release No. 82779 (February 26, 
2018), 83 FR 9055 (March 2, 2018) (SR-FICC-2018-801). FICC also 
filed a related proposed rule change (SR-FICC-2018-001) with the 
Commission pursuant to Section 19(b)(1) of the Exchange Act and Rule 
19b-4 thereunder, seeking approval of changes to its rules necessary 
to implement the Advance Notice (``Proposed Rule Change''). 15 
U.S.C. 78s(b)(1) and 17 CFR 240.19b-4, respectively. The Proposed 
Rule Change was published in the Federal Register on February 1, 
2018. Securities Exchange Act Release No. 82588 (January 26, 2018), 
83 FR 4687 (February 1, 2018) (SR-FICC-2018-001).
    \4\ See letter from Robert E. Pooler, Chief Financial Officer, 
Ronin Capital LLC, dated February 22, 2018, to Robert W. Errett, 
Deputy Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2018-001/ficc2018001-3133039-161947.pdf; letter 
from Michael Santangelo, Chief Financial Officer, Amherst Pierpont 
Securities LLC, dated February 22, 2018, to Brent J. Fields, 
Secretary, Commission, available at https://www.sec.gov/comments/sr-ficc-2018-001/ficc2018001-3130095-161938.pdf. Since the proposal 
contained in the Advance Notice was also filed as a Proposed Rule 
Change, supra note 3, the Commission is considering all public 
comments received on the proposal regardless of whether the comments 
were submitted to the Advance Notice or the Proposed Rule Change.

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[[Page 10762]]

    Section 806(e)(1)(G) of the Clearing Supervision Act provides that 
FICC may implement the changes if it has not received an objection to 
the proposed changes within 60 days of the later of (i) the date that 
the Commission receives the Advance Notice or (ii) the date that any 
additional information requested by the Commission is received,\5\ 
unless extended as described below.
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    \5\ 12 U.S.C. 5465(e)(1)(G).
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    Pursuant to Section 806(e)(1)(H) of the Clearing Supervision Act, 
the Commission may extend the review period of an advance notice for an 
additional 60 days, if the changes proposed in the advance notice raise 
novel or complex issues, subject to the Commission providing the 
clearing agency with prompt written notice of the extension.\6\
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    \6\ 12 U.S.C. 5465(e)(1)(H).
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    Here, as the Commission has not requested any additional 
information, the date that is 60 days after FICC filed the Advance 
Notice with the Commission is March 13, 2018. However, the Commission 
finds the Advance Notice complex because FICC proposes to make 
detailed, substantial, and numerous changes to the GSD margin 
calculation. Therefore, the Commission finds it appropriate to extend 
the review period of the Advance Notice for an additional 60 days under 
Section 806(e)(1)(H) of the Clearing Supervision Act.\7\
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    \7\ Id.
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    Accordingly, the Commission, pursuant to Section 806(e)(1)(H) of 
the Clearing Supervision Act,\8\ extends the review period for an 
additional 60 days so that the Commission shall have until May 12, 2018 
to issue an objection or non-objection to advance notice SR-FICC-2018-
801.
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    \8\ Id.

    By the Commission.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-04903 Filed 3-9-18; 8:45 am]
 BILLING CODE 8011-01-P